Navigating Purpose with Extra Discretionary Income

Josh embraces his financial freedom, exploring purposeful ways to use his extra income.

### Navigating the Messy Middle: Finding Purpose with Extra Income
* 💰 Josh is in a favorable financial position, having paid off his car debt and maintaining a low mortgage rate of **4.75%**, while saving **24% of his income** and planning to **max out his Roth IRA and custodial Roth accounts**.
* 🤔 He expresses a feeling of being in the "**messy middle**" and grapples with the existential question of **purpose** amidst his newfound discretionary income.
* 📈 The discussion emphasizes that once individuals reach a stage of abundance, they should focus on **multiplying their wealth** rather than merely **maintaining it**.
* 💡 This multiplication can take many forms, such as **retiring early**, supporting charitable organizations, or **educating children about financial responsibility**.
* 🌍 The speaker encourages viewing this stage as an **exciting opportunity to make intentional financial decisions** rather than feeling burdened by obligations.
* 🎉 Teaching children about money management involves three fundamental actions: **giving**, **saving**, and **spending**, which should be prioritized in that order.
* 💸 Adults, like Josh, also face these three choices with their discretionary income, and they are encouraged to **save 25%** while considering the possibility of **saving more for greater future options**.
* 🏖 Ultimately, money is a tool that enables individuals to **focus on what truly matters** in their lives, allowing them to align their financial decisions with their **personal values and goals**.

[Music] okay, ready for Josh's question. He says, How do we maintain focus with leftover income? Where is my purpose? I'm in the messy middle. We have no car note and only a mortgage at 4.75%, so they're saving 24% and plan on maxing the Roth IRA and custodial Roth open. I think that means he's opening one, maybe for a child. But I thought that this was interesting 'cause it sounds like he's got a lot of good things going for him. He's doing a lot of things right, but it's kind of how now he has this extra income. How do you treat it? How do you get on the same P? Did he say the car not? Was that the interest right? No, car mortgage is 4.75%. So, it sounds like this is what's going on in Josh's life. Hey, I've done all the things right. I'm in the messy middle. I'm in that stage, but I've paid off the car debt, and my home loan is reasonable, and

you know it's it's uh the mortgage rate is low, and I find myself with extra discretionary income. I've been able to fund one that's amazing. It sounds like your messy middle is maybe getting a little bit Messier. That's a great thing, worthy and worth celebrating. So then the question becomes, and I thought it was so interesting just riddled in here, was like this deep existential question, Where's my purpose? Where's my purpose? Like, and I think that right there, I think that question is the key to the answer, What should I do with the extra income? So I love when I read critiques of the book, and they talk about the fact that, Man, it's so basic, as he's going through the elements of 1 through 7. But, and even the CR, even the people who are critical of the book, like, But at the end of the book, this guy kind of opens up about what it's like when you're Building Wealth, some of the questions you ought to ask yourself, the decisions you make, and and

Josh, you're hitting that. That's exactly once you get into steps eight. You get into steps nine. You really do need to kind of take control and figure out your life because you're in a different place when you get to those abundance goals. In the fact that most people work and do things out of obligation, meaning you don't own your life, you don't own your time, you have to go to work to pay your bills. When you're in this place of abundance, you've made good decisions, and now you have margin in your life, guys. You don't have to think about just what you have to do to make wealth. You don't even have to think about the things you have to do just to maintain the wealth. You to now think about how you want to multiply. Multiply means many things. It could be now you want to, you know, you do want to retire early and own your time. Maybe multiply means that you actually want to fund some organizations that you care significantly about. Maybe multiply means

that you also want to help the kids become good with money by helping train them and do other things. This is the part where I always say this is the sexy part of it as well, is because maybe this is when, if you have a spouse, y'all are going out on the date nights to talk about what is the 5-year travel goal, what does it look like on how we want to train the children with money, what do we want this money to do for us and say for us and speak and enable for our lives. This isn't something where you should be troubled by this. This is something you should be excited about because this is the part where you own your life and you get to actually make the most of it. Yeah, I love it. You get to make financial decisions because you want to, not because you have to. And this is Josh, this is so, so simple, but every time money comes into my kids' possessions, I've got three little kids, two of them are old enough to start

grasping money concepts. Now, I tell them there are three things we can do with money. Whenever money comes through, there are three things that we can do. We can give it, we can save it, we can spend it. And I like to teach it to them in that order. Well, even we as adults, even as we in our financial journey, when we reach this place where we have discretionary income and we've been able to check all the boxes and we've done all the things that we know we're supposed to be doing, we are still faced with those exact same three options. If I have discretionary income, okay, do I want to give it to something? Is there somewhere where I want to be able to use my resources to multiply that wealth? Do I want to save it? And by the way, we tell you that the goal should be to save 25%, but you don't have to stop there. Now, don't mishear me. I'm not telling you, Oh, you got to save 40% or 50%, but you could

if you find you have discretionary income, saving more earlier on gives you more options sooner, and there's nothing inherently wrong with that. Or if you are saving the 25%, you're doing all the stuff you're supposed to be doing. There's nothing wrong with spending that money. It may be doing the Home Improvement, it may be upgrading the automobile, taking the trip, whatever the thing is that you place value on. If you've done all the stuff you're supposed to do and you've done it the way that you were supposed to do it, you are in this magnificent position where you get to choose, What do I want to do with my money? Because ultimately, money is nothing more than a tool that allows me to do the things that I really want to do and focus on the things that I actually care about.

How Should We Prioritize and Use Leftover Income?

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The Money Guy Show

Navigating Extra Income and Finding Purpose

Josh is in a stable financial situation, with no car debt and a low mortgage rate, and is now faced with extra discretionary income.

He is questioning his purpose and how to effectively use this additional money.

The speaker emphasizes that finding one's purpose is key to making decisions about extra income and building wealth.

Reaching abundance goals allows you to take control of your life and time, moving away from obligation.

With good decisions and margin in life, you can focus on multiplying your wealth and making a positive impact.

This phase is exciting, as it offers the opportunity to plan for the future, help others, and make financial decisions based on desire rather than necessity.

There are three main things we can do with money: give it, save it, or spend it.

This concept applies to both children and adults, especially when managing discretionary income.

The goal is to save at least 25%, but individuals can choose to save more if they wish.

The Importance of Saving and Spending Wisely

Having discretionary income and saving early provides more options in the future.

There's nothing wrong with spending money on things that bring value, like home improvements or vacations, after fulfilling financial responsibilities.

Ultimately, money is a tool to help achieve personal goals and focus on what truly matters.